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243. Memorandum From the Chief of the Near East and Africa Division, Directorate of Plans (Roosevelt) to Director of Central Intelligence Dulles1

SUBJECT

  • [Omission in the original]

1. Tehran Station reports state that TCI Director, Mr. William Warne’s presence in Iran and his numerous contacts with high ranking Iranian Government officials are being successfully exploited by Prime Minister Mossadeq in such a way as to dishearten the opposition and strengthen the Mossadeq administration. It has been reported that [Page 629]Prime Minister Mossadeq is interpreting Ambassador Henderson’s absence as lack of U.S. support for his policies and is concerned by the fact that Henderson’s absence detracts from the strength of his (Mossadeq’s) government. This is the desirable effect from our point of view. To overcome this Mossadeq is attempting with some success to minimize the effects of Henderson’s absence by exploiting to the utmost Mr. Warne’s continuing contacts and cordiality with important government leaders.

2. The opposition leaders with whom we are dealing have expressed concern since they feel the favorable effects of President Eisenhower’s letter and Ambassador Henderson’s absence have to some degree been counteracted by Mr. Warne’s activities.

3. As you know most Iranians have interpreted continuing Point Four aid as a tangible sign of U.S. support of Mossadeq. To the degree that Mr. Warne is synonymous with Point Four his temporary absence from the country would help to disabuse the Iranians of this misconception, even if it is undesirable to reduce Point Four aid at this time.

4. It would not be advisable for Mr. Warne to be recalled to the United States for consultation as this could be exploited by Mossadeq to mean Warne was negotiating increased U.S. aid to Iran. It has been suggested by our Station that Mr. Warne leave Iran temporarily on the excuse he was vacationing in Europe.

5. Recommendation: It is recommended that you discuss this matter with Under Secretary of State Bedell Smith and with him attempt to arrive at some solution which would keep Minister Warne away from his post (but not in the U.S.) for approximately one month without revealing to latter the existence of TPAJAX and without provoking too great a storm of protest from Point Four and Minister Warne. I am sorry not to be able to make specific suggestions at this time, though I would express the pious hope that a suitable conference requiring his presence in Europe might be found. I have requested John Waller and Donald Wilber to explore possibilities with Jernegan and Richards of State Department.2

Kermit Roosevelt3
  1. Source: Central Intelligence Agency, DDO Files, Job 80–01701R, Box 3, Folder 8, TPAJAX Vol. II. Eyes Only.
  2. Dulles had discussed the Warne matter with Under Secretary Smith at a Psychological Strategy Board meeting on July 15. In a memorandum for the record, Dulles wrote that he “spoke to WBS about the activities of Mr. Warne in Iran who seemed to be swimming against the general current in his Point IV activities. I said I thought it might be desirable for him to take a vacation somewhere outside of Iran for the next month or so. WBS did not know about this and asked for a specific recommendation. (NE should prepare a short memo for me to send to WBS).” (Ibid., Office of the Director of Intelligence, Job 80R01731R, Box 33, Folder 1095, DCI/PSB)
  3. Printed from a copy that bears this typed signature.